Use of Merchant Services Growing Across UK
The use of merchant services has been steadily growing across the UK, but there are still a number of businesses who are relying on outdated payment methods and potentially restricting their profits. For our neighbours across the pond in the United States, it’s estimated that more than half of small businesses still
do not accept credit card payments through merchant services, and here in the UK it is reported that independent retailers are doing themselves out of £12 billion each year by accepting cash or cheque only. Simon Black of SagePay says there is a ‘disconnect between what retailers are offering customers and how British consumers like to shop’, and this is something that needs to be addressed.Merchant services enable businesses of any size to safely and securely accept credit card payments either over the telephone, via the internet on ecommerce websites, or face-to-face. Here are just a few of the reasons why businesses may benefit from accepting card payments with merchant services:
- British shoppers now expect for merchant services to be a standard aspect of any business. 64 percent of customers now
prefer to pay via credit card, rather than using cash or cheque.
- Small businesses may find that the use of merchant services can help to save money in the long term by reducing the need
for on-site securities for cash stored and held on the premises.
- Businesses can benefit from faster access to funds as it typically takes just a few days for merchant services to process
transactions, rather than waiting for cheques to clear.
- The introduction of chip-and-pin technology has provided a major advantages for businesses who now have added protection
against fraudsters claiming purchases were never authorised.
Small businesses are often deterred from accepting credit cards for two primary reasons. Firstly, they are put off by credit card
transaction fees, which can be as much as 10 percent of the purchase price depending upon the card in question, and secondly they may be
deterred by the initial costs of merchant services accounts. However, merchant services do not have to be costly. In fact, it’s now possible
to compare merchant services online to find a solution that meets your budget.
Additionally, the use of merchant services can make it easier to calculate the transaction fees for each purchase, making it simple to draw up an
accurate business plan to monitor profits and overall growth and development.